TFSA contribution for new resident
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Thread: TFSA contribution for new resident

  1. #1
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    TFSA contribution for new resident

    Hello,

    I landed in Canada in Dec 27th, 2010 as temporary worker, and got my SIN on Dec 29th, 2010. Apparently, I did not file taxes for 2010.

    My question is, what would be my TFSA contribution on Jan1st, 2012.

    Thanks


  2. #2
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    I think you would be better to direct your question to CRA, and let us know what their answer is.

    http://www.cra-arc.gc.ca/tx/ndvdls/t...trbtn-eng.html

    But TFSA contribution room depends on your age and your status as a resident for tax purposes, not whether or not you filed an income tax return in any given year. So assuming you were a tax resident for 2011, you already have $5K of contribution room for 2011, and in Jan. 2012 you will get another $5K (unless it is increased to $5.5K - that hasn't been announced yet.)

    I don't think you would be considered a resident for 2010 arriving so late in the year, but it can't hurt to ask.

  3. #3
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    I got the contribution for 2010.

  4. #4
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    Quote Originally Posted by mina124 View Post
    I got the contribution for 2010.
    That is interesting fact to share with the forum readers! I assume that this was based on the date of arrival? Not the date that you got your SIN?

  5. #5
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    Quote Originally Posted by OhGreatGuru View Post
    I don't think you would be considered a resident for 2010 arriving so late in the year, but it can't hurt to ask.
    That doesn't matter. Any contribution room for TFSA/RESP etc is based on any eligibility for a calendar year. A baby born on Dec 31 of 2010 would still get the full RESP grant-eligible contribution for 2010 for example.
    Mike Holman
    Money Smarts Blog Investing and Personal Finance

  6. #6
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    Quote Originally Posted by Guban View Post
    That is interesting fact to share with the forum readers! I assume that this was based on the date of arrival? Not the date that you got your SIN?
    From CRA Web Site: TFSA contribution room

    Starting in 2009, TFSA contribution room accumulates every year, if at any time in the calendar year you are 18 years of age or older, have a valid Canadian social insurance number and are a resident of Canada.


    According to OP, he landed Dec.27, 2010, received his SIN Dec. 29, 2010, and I presume was over 18. So he qualifies on all 3 conditions for 2010.

    It would be an interesting question what CRA would have done if there had been an administrative delay in processing his SIN. I suspect they would stick to their rule and disqualify him for 2010, because it's a decision-making discriminator that is very easy to apply, and they wouldn't want to set precedents for exceptions.

    Last edited by OhGreatGuru; 2013-03-12 at 07:24 PM.

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